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Table of Contents
future financial performance to determine whether such performance is both sustained and significant enough to provide sufficient evidence to support
reversal of the valuation allowance.
The December 31, 2014 valuation allowances of $4.8 billion and $4.7 billion for UAL and United, respectively, if reversed in future years will reduce income
tax expense. The current valuation allowance reflects increases from December 31, 2013 of $160 million, for both UAL and United, including amounts
charged directly to other comprehensive income.
The Company’s unrecognized tax benefits related to uncertain tax positions were $9 million, $14 million and $19 million at 2014, 2013 and 2012,
respectively. Included in the ending balance at 2014 is $7 million that would affect the Company’s effective tax rate if recognized. The Company does not
expect significant increases or decreases in their unrecognized tax benefits within the next twelve months.
There are no significant amounts included in the balance at December 31, 2014 for tax positions for which the ultimate deductibility is highly certain but for
which there is uncertainty about the timing of such deductibility.
The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits related to the Company’s uncertain tax positions (in
millions):
Balance at January 1, $14 $19 $ 24
Decrease in unrecognized tax benefits relating to settlements with taxing authorities (5) — (12)
Increase in unrecognized tax benefits as a result of tax positions taken during a prior
period — — 8
Decrease in unrecognized tax benefits relating from a lapse of the statute of
limitations — (5) (1)
Balance at December 31, $ 9 $14 $ 19
The Company’s federal income tax returns for tax years after 2002 remain subject to examination by the Internal Revenue Service (“IRS”) and state taxing
jurisdictions. Currently, there are no ongoing examinations of the Company’s prior year tax returns being conducted by the IRS.

The following summarizes the significant pension and other postretirement plans of United:
Pension Plans
United maintains two primary defined benefit pension plans, one covering certain pilot employees and another covering certain U.S. non-pilot employees.
Each of these plans provide benefits based on a combination of years of benefit accruals service and an employee’s final average compensation. Additional
benefit accruals were frozen under the plan covering certain pilot employees during 2005 and management and administrative employees as of December 31,
2013 at which time any existing accrued benefits for those employees were preserved. Benefit accruals for certain non-pilot employees under its other
primary defined benefit pension plan continue. United maintains additional defined benefit pension plans, which cover certain international employees.
Other Postretirement Plans
We maintain postretirement medical programs which provide medical benefits to certain retirees and eligible dependents, as well as life insurance benefits to
certain retirees participating in the plan. Benefits provided are subject to applicable contributions, co-payments, deductible and other limits as described in
the specific plan documentation.
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